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6 Facts to Shine Light on the Importance of Careful Job Screening

In a world in which many job candidates will do whatever it takes to get in the door – including lie, cheat, and steal – employers must exercise extreme caution and care during the recruitment process. Background screening is an important element of performing due diligence on potential hires, but many employers may not realize just how critical background checks are.  Here are six facts to shine some light on why every employer should carefully screen job applicants.

1) 96% of employers conduct at least one type of employment background check.
According to a survey by HR.com and the National Association of Professional Background Screeners (NAPBS), almost all employers perform some kind of background check. The most common include criminal history searches, including searching national criminal databases (93% of employers) and county/state databases (97%). The least common checks include motor vehicle driving records (68%) and education verification (75%).

2) The most common reason to perform a background check is to improve the quality of hires.
The HR.com/NAPBS survey also found that 52% of employers screen primarily to improve the quality of their workforce; catching red flags in an employee’s history can help them to prevent bad hires.

3) One in every 40 employees has been apprehended for theft from their employer.
Risk management advisory firm Hayes International reports that approximately 2.5% of employees were apprehended for theft from their employer in 2017. Worse, they found that employees stole even more than shoplifters: an average of $1,361.37 versus $301.97 per case in 2018.

4) Overall workplace theft is on the rise.
The 2018 Global Study on Occupational Fraud And Abuse by the Association of Certified Fraud Examiners (ACFE) reports that theft of non-cash employer property nearly doubled between 2002 and 2018. Interestingly, warning signs like poor productivity and performance evaluations can alert employers. “We refer to these events as ‘human resources-related red flags,” the report says.

5) 85% of employers have caught employees lying on resumes or job applications.
HireRight’s 2017 Employment Screening Benchmark Report says that nearly nine out of ten employers have caught applicants lying, a 28.8% increase from just five years ago. “It’s an epidemic,” Scott Samuels, CEO of Horizon Hospitality, an executive search firm, tells Monster.com. “More and more people feel like they can get away with lying because they think no one is going to check and verify. It’s rampant.”

6) Many fraudulent employees go on to cause problems for other employers.
The ACFE found that many employers failed to report employee fraud to police or other authorities, citing fears of bad publicity, concerns about the cost, or deeming internal discipline sufficient. John Warren, VP and general counsel of ACFE, says this creates the risk that these employees will simply “move on to other employers and repeat their crimes.” That’s why background checks are so crucial!

CoAdvantage, one of the nation’s largest Professional Employer Organizations (PEOs), helps small to mid-sized companies with HR administration, benefits, payroll, and compliance. To learn more about our ability to create a strategic HR function in your business that drives business growth potential, contact us today.  

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